It’s safe to say in-game economics almost echo the old principle of trade and barter, where players would simply trade items they consider valuable with each other. Think the Echoing Fury Mace in Diablo 3 or the M4A4 Howl in CS:GO, items you’d be lucky to even lay your eyes on in the game. Other factors involved include value determination based on supply and demand, as well as haggling and negotiations. It’s all a natural part of how in-game economies have operated since the early days.
However, like other aspects of the gaming industry, the concept has evolved to the point where these items now hold real-life value, with online trading platforms facilitating the trade. It’s almost like how streamers are making the big bucks simply playing their favorite games and participating in esports competitions—gamers are making a living off of these new in-game economies.
How Did In-Game Economies Come About?
As mentioned, in-game economies practically evolved with the gaming industry. Early multiplayer platforms, in all their pixelated glory, built the foundation for these trade mechanics to develop and thrive. So, when the more advanced and complex massively multiplayer online role-playing games (MMORPGs) emerged, they became the ideal place for these virtual trading systems to grow.
In-game accounts suddenly became more valuable than ever before. Gamers would grind and play until they were able to obtain lucrative armor, weapons, and other items that everyone knew were valuable. With this newfound power, they could now either sell and trade these items or their entire accounts for real money. All that hard work in-game was no longer just for notoriety or the virtual world—it came with rewards and value in the real world.
At this point, we’re even seeing formalized trading areas in some MMORPGs, including World of Warcraft’s many dedicated Auction Houses and Old School RuneScape’s Grand Exchange. These allow players to bid and sell, with tactics enhanced by resources similar to how a curated list with 120 spins would enhance slot strategies. Depending on supply and demand, the value of items fluctuates.
Virtual Items and Their Real-World Value
A large part of gaming involves getting better at a game, whether it’s refining skills, being able to access exclusive items or aesthetics, or simply having power. While many are attracted to the prospect of purchasing an already-boosted account because it requires less time and effort to grind through earlier levels, there’s something about rare items and assets that make them the most valuable treasures in any game. Perhaps it’s the idea of owning something that only a select few have and the exclusivity and status that they get to enjoy in the community.
The MMORPG Entropia Universe is a unique sci-fi video game that actually focuses on a metaverse real-cash economy experience. Although there is still that exploration aspect with interplanetary travel, an element of socialization, and epic adventures to take part in, it runs almost like a capitalistic business. Gamers can purchase anything from services and shares to items and skills, and they are required to purchase expendable resources for in-game activities. What’s most striking about Entropia Universe is that it has held the Guinness World Record twice for the most expensive virtual world objects ever sold.
A virtual nightclub called Club Neverdie was sold for $335,000, and a virtual space station was sold for $330,000. The man who sold Club Neverdie became somewhat of a celebrity in the space, owing to his exploits as an entrepreneur in the game. These six-digit figures are almost unimaginable, considering these items aren’t tangible. When it comes down to it, they’re simply pixels on a screen. What’s even more fascinating are the in-game items that serve no function, where players just want to own them for reasons of nostalgia or wear them as a status symbol.
A great example of this is the Old School RuneScape Blue Partyhat. As this hat is rare and (unfortunately) discontinued, owning one is considered an achievement in itself. They’re not even tradable on the Grand Exchange, which means you can only get them through player-to-player trade. One of these hats was sold for a whopping $4,500, demonstrating how the value of virtual items can transcend the gaming world.
The Connection Between Gaming and Real-World Markets
Gamers using video games to make money in the real world is only starting to become even more common, with items like Fortnite and CS:GO skins and Call of Duty weapons being sold for unreal amounts of money. It won’t be surprising to see players treating virtual assets as investments, holding onto them in-game and hoping their value will increase over time, like watches or jewelry. After all, if you’re a gamer investing hundreds of hours and effort into a video game, why not try to make revenue off of it?
These activities are certainly lucrative for players, but the implications go far beyond that, influencing the stock prices of gaming companies and how games cater to consumer priorities. Since digital experiences are increasing in value, we might start seeing microtransactions and downloadable content (DLC) take over a variety of video games—which can be a plus or a negative, depending on your personal opinions.
For most gamers, the best scenario is to keep both realms relatively separate. Not many want to log in and be bombarded with aggressive marketing or suddenly become blocked from accessing content. The crossover between in-game economics and real currency should be an addition and an option without interfering with the standard player experience.